The workforce is evolving and people’s outlook on how they work has shifted. Ideas around independent work, the gig economy, employee engagement, and outsourced services are changing how employers are hiring, training, and managing talent. With the help of AI-driven technologies and new data sources, the capabilities of the human resources department are quickly changing. Corporations cannot afford to lose top talent to their competitors and the best companies will empower their HR teams with innovative technology to give them the advantage.
The global market for HR technology is valued at $400 billion, with $2 billion of venture capital and private equity investment into this market in just the past 2 years. However, it is estimated that 45% of companies are still focused on underlying HR infrastructure such as basic process automation, rather than more innovative HR technologies. Large enterprises are only recently realizing that younger startups can streamline innovative solutions to traditional HR problems in hiring, training, engagement, and benefits.
War for Talent and Recruitment
Organizations need to successfully attract, develop, and retain talented employees for future success. Over the past decade, the importance of talent has surpassed capital, strategy, or R&D. However, more people than ever are dissatisfied with their jobs - estimated at 45-60%. According to LinkedIn, over 75% of the workforce identify as “passive job seekers,” holding out for a better option to come along.
Over 75% of the workforce identify as “passive job seekers,” holding out for a better option to come along.
Simultaneously, the rise of the freelance “gig” economy is being accelerated by the ability to always be connected regardless of location. The desire for flexibility and freedom to pursue meaningful work are increasingly more important to employees but traditional jobs are falling short on delivering. Companies need to innovate in their recruiting and employee engagement to compete with other, more alluring options.
Talent management and recruitment are becoming increasingly more data-driven. Companies are going beyond the standard CV to attract to understand candidates while keeping them engaged at every point in the journey. Instead of blindly releasing job descriptions on hiring sites, recruitment teams are engaging in programmatic targeting - this automates a significant portion of the recruitment process by establishing a set of rules and data for a particular job opening.
Hiring managers are trying to capitalize on this trend through recruiting methods that can connect with talent quickly and identify the right candidate for their company. AI driven solutions can shorten the hiring cycle by pushing the best candidates that align with the necessary technical skills, cognitive skills, culture fit, diversity, etc for the job.
Employee Retention and Engagement
With the war on talent growing, maintaining employee engagement and retention has become crucial for companies in all industries. According to LinkedIn’s 2018 report on talent, the tech industry has the highest turnover rate at 13.2% and retail industry follows close behind at 13%. Even the best companies to work for experience average tenures of 1 to 2 years. Numbers like these have caused employers to search for ways to change workplaces to be more productive, efficient, and forward-thinking. As a result, companies turn towards advanced technology and processes to improve a company’s vision and purpose, culture, workflow and physical workspaces.
Training and Reskilling
As digitalization, automation, and artificial intelligence change the face of work, companies are realizing the importance of training and reskilling existing employees so they can leverage these technologies in their day-to-day.
66% of executives believe that addressing skill gaps due to automation technologies is at least a “top-ten priority.”
According to the McKinsey report “Jobs lost, jobs gained: Workforce transitions in a time of automation,” over 14% of the global workforce is expected to change their occupational categories in the near future. Executives are seeing the urgency of investing in re-training and reskilling their current employees. In a study that polled 300 executives at companies with more than $100 million in annual revenue, 66% believe that addressing skill gaps due to automation technologies is at least a “top-ten priority.”
Updating the skills of an existing workforce helps the organization keep up with technology trends like automation and big data. Many companies that have invested time and money into re-training programs have reported a positive correlation between employee training and engagement. When existing employees are confident in their skills and steady career progression, their contributions to the team are also more effective. Training programs also decrease the turnover rate of employees by enhancing the skills of existing employees, and thus reducing the costs of hiring and training new employees.
Payroll, Benefits, and Wellness Initiatives
As competition increases in hiring top talent, organizations are realizing the important role that benefits and wellness plays in employee retention. Workplace wellness initiatives help employees maintain a healthy lifestyle in and outside of work. These programs can help participants make healthy changes to reduce their health risk, while at the same time, enhance their overall mental and emotional wellbeing.
Companies that offer competitive benefits and promote a healthy lifestyle culture are often seen as a better place to work, which can help both retain existing employees and attract new top talent. Research also shows that offering incentives for leading a healthy lifestyle can increase productivity, raise morale, and even help reduce the cost of medical care.
Modern technology helps companies identify and optimize benefits and wellness programs to empower employees. Companies like PeopleJoy help CEOs and HR grow their businesses by attracting and retaining their most valuable resource. People. Their unique benefits help develop a stronger employer/employee relationship, by addressing the financial wellness needs of your employees outside of work.
The Future of Corporate HR
The state of HR is changing fast to meet the needs of a changing workforce and future generations. Large enterprises must innovate and update existing HR infrastructure in order to compete for top talent with smaller, nimble startup teams. From sourcing quality candidates to improving internal employee benefits and engagement, corporations have never had such a variety of solutions to become more competitive and prepared for the future.
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